Social Media Promotion: How to Determine the Price and Budget for an Advertising Campaign

Social networks have long ceased to be Social Media Promotion just a place for communication. Today, it is a powerful tool for promoting business. But for advertising in social networks to bring results, you need to correctly determine the campaign budget. Let’s figure out what the price of promotion in social networks depends on and how to calculate the optimal investment.

1. Factors Affecting the Cost of Advertising on Social Networks

Choosing a social network

Each social network has its own audience and Social Media Promotion  advertising opportunities. For example, VKontakte is more suitable for promoting mass-market products, while Telegram is better for advertising business services. Accordingly, advertising prices in different social networks will differ. Before launching a campaign, study the features of each platform and choose the most suitable for your target audience.

By the way, you shouldn’t limit yourself to popular social networks like VK and Instagram. It may turn out that your audience is on a less popular but more niche social network. Take a closer look at Odnoklassniki, TikTok, Yandex.Zen.

Competition in the niche

The higher the competition in your field, the more expensive the advertising will be. This is logical: many people want to place ads – the price goes up. The difference is especially noticeable in high-margin niches: banks, insurance, car dealers, real estate. There the cost of a lead can reach several thousand rubles.

The solution is to look for alternative options within social networks. For example, place your ads not in the feed, but in stories, or use non-standard ad formats. You can negotiate advertising with niche publics and bloggers. As a rule, this is cheaper than advertising through official social media tools.

Advertising campaign objectives

What do you want to get from social media advertising: reach, clicks, leads, sales? The choice of formats and platforms, and therefore the final budget, will depend on the goals. Think in advance about which indicators are most important to you.

The main thing here is not to chase fashion taiwan email list  trends, but to start from the tasks of your business. If the goal is to increase brand awareness, focus on coverage formats (seeds, banners). For lead generation, performance tools are more suitable: targeting, marketplaces.

2. How to calculate your social media advertising budget

We take into account the level of the sales funnel

Social media advertising works at different stages of the sales funnel. First, we increase brand awareness, then we engage the audience, introduce them to the product, and only at the end we push them to buy. Each stage will have its own advertising  betting email list formats and performance indicators.

Here is an approximate distribution of the budget by funnel levels:

  • Recognition (top of the funnel) – 20%
  • Engagement (middle of the funnel) – 30%
  • Conversion (bottom of the funnel) – 50%

We determine the cost of the result

To evaluate the effectiveness of advertising, you need to calculate how much it costs to achieve one target metric. For example, how much one click, lead, sale, app installation, etc. costs. This figure can be found in the statistics of the advertising account or viewed in third-party analytics services.

Let’s say you have an online store of home goods. The  growth in the use of automation systems cost of a click on Instagram is 10 rubles, the conversion from clicks to an order is 2.5%. It turns out that one order from advertising costs 400 rubles (10 rubles / 2.5%). If your margin is higher than 400 rubles – great, the advertising pays off. But if not – think about how to optimize the campaign.

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